What is the liability for the outstanding premiums at year-end?*   a. 2,000,000 b. 562,500 c. 2,250,000 d. 500,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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What is the liability for the outstanding premiums at year-end?*
 
a. 2,000,000
b. 562,500
c. 2,250,000
d. 500,000
Sisiw Company offers a pottery bowl if they send four boxtops
from its products and Php5. Sisiw Company estimated that 50%
of the boxtops will be redeemed. During the current year,
the entity sold 800,000 boxes and customers redeemed 350,000
boxtops. The cost of each bowl is Php30 plus a distribution
cost of Php15.
Transcribed Image Text:Sisiw Company offers a pottery bowl if they send four boxtops from its products and Php5. Sisiw Company estimated that 50% of the boxtops will be redeemed. During the current year, the entity sold 800,000 boxes and customers redeemed 350,000 boxtops. The cost of each bowl is Php30 plus a distribution cost of Php15.
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